Jonathan Farrington’s Blog

Some interesting facts about referral based selling:

• 40% of sales people are failing in their sales careers.

• 45% of all sales people earn the average income for their industry.

• A typical sales person devotes only 10-20% of their time to actual selling because a large proportion of their available time is devoted to cold calling.

• 85% of all sales people do not generate enough quality referrals.

• Salespeople who actively seek and exploit referrals earn 4 to 5 times more than sales people who don’t.

• Referral business closes and converts more than 70% of the time.

Why is referral based selling so powerful?

A referred customer is already pre-sold on the credibility of the sales person, their company and the relevance of the products/services sold. These types of opportunities are much warmer than a cold-call based opportunity because it maximises the goodwill, inherent in the relationship between the referred customer and the referring person. By association, sales people are consequently perceived in a different light compared to those that have made contact ‘out of the blue’.

The costs of selling to a referred customer are reduced because they are easier to see and are likely to be reasonably well qualified so that the probability for converting the business is much higher. Generally speaking, referred prospects will accelerate through the sales pipeline at a much faster rate than other types of opportunities and they will also be more receptive towards providing future referrals.

What are the biggest barriers to obtaining referrals?

If asking for referrals has not been included and communicated in the sales process then this will deter sales people’s focus as they will see asking for referrals as a ‘nice to do’ rather than a ‘must do’. This in turn usually means that there is no rigorous method for measuring and monitoring how many referrals are generated and what the conversion ratios are for closing referred customer business. Energy goes where attention flows, so without specific attention to this sales people are unlikely to invest their energy in this direction. (Even if they are firm believers in the positive impact that referrals can create!).

For many sales people asking for referrals is uncomfortable because they feel unsure about how to do this effectively and they aren’t confident they will get their desired response. If people don’t know how to do something and they believe that what they are doing will damage their existing relationships, then it’s better to avoid it all together. Additionally, if sales people make the common mistake of asking for referrals too early on in the relationship this can result in more refusals that further erode sales people’s confidence.

Therefore, to optimise the use of referral-based selling the following components are vital:

1. Asking for referrals and acting on them needs to be incorporated in the overall sales process.

2. Metrics around referrals should be sought and evaluated on a regular basis because this contributes towards furthering the rationale for generating them.

3. Development and training needs to be delivered to the sales team so they can maximise the impact of referrals and feel confident with this skill.

What is the best time to ask for referrals?

People will freely give referrals when they have benefited from your product/service and have an established relationship with you. This rarely occurs during the initial meeting because whilst they may like you, they haven’t yet validated what you can do for them. That’s why asking for referrals should be when the relationship you have established is strong enough to ensure their trust and belief in you. Assessing the strength of your existing customer relationships can be very subjective unless there is a meaningful set of relationship criteria in place.  Although these will vary from organisation to organisation, they may include factors like:

- Communication frequency with key influencers
- Satisfaction with product/service
- Speed of response to queries/problems
- Length of relationship
- 
The customers with the highest scores (based on the relationship criteria) are those that should be approached for referrals.

What is the best way of generating referrals?

1. Prepare a description in the form of a criteria list that specifies the type of person or organisation that you are looking to approach. This should be based on the profile of your Ideal Customer.

2. Evaluate all your customers using a relationship criteria and identify a list of those with the highest scores. For every customer your aim is to generate a minimum of 5 referrals. Therefore, if you have 25 customers on your list your target number of referrals will be 125.

3. Contact each customer on your list and take the pressure of them by explaining that you don’t want to sell to them, you would like their help.

For example:

“Do you know anyone who is (specify your criteria) that would be interested in learning about how our products/services can benefit them?” Preface your question with a softener such as: “I wonder if you can help me” or “I would really appreciate some  advice”

3. When customers give you referrals, ask their permission to use their name when making contact. Alternatively, where your relationship is ‘rock solid’ ask customers to make the initial introduction by letter or email. Often customers will give a glowing testimonial and create a relevant context when introducing people.

4. Finally,thank customers for referrals and keep them appraised of your progress. This creates a positive association towards the giving of more referrals in the future.

Today’s News: As it is Halloween, I wanted to remind you of something scary: Fact - 80% of salespeople, never progress beyond a foundation level in terms of skills development; now that is frightening! Within the 4D Programme, which I will be launching early in the new year, I will be illustrating just what it takes to make it into the top 20% and then upwards to Top 5% status - look out for The JF Consultancy launch, more soon!

Tomorrow: On the JF Guest Author Spot I welcome Rick Johnson for the first time.

The JF Guest Author Spot

“Stop Sounding Like a Self-Serving Salesperson” by Jill Konrath

After several months of leaving a series of voicemail messages for a prospective customer, she finally picks up the phone. “Marie Trent speaking,” she says in a flat tone.

Startled by the human voice on the other end of the phone, the message you spent hours crafting disappears instantaneously from your memory bank. Instead, you blurt out:

“Hi. My name is __ and I’m the sales rep for Generic Industries. You’ve probably heard of us. We’re the fastest-growing firm in the market right now and we have locations in 13 different cities. The reason I’m calling today is I’d like to get together with you to explore your needs and show you …”

“Excuse me,” she interrupts. “We’re already working with another company.”

“Which one?” you ask, fingers crossed.

“Newco. And we’re quite happy with them.”

“What do you like about them?”

“They take good care of us, they know our firm and their pricing is great.”

“Would you be open to considering other options? I’d be glad to show you what we could do for your company.”

“Not at this time,” she answers curtly.

“When should I call you back then,” you ask politely.

“Why don’t you try calling in six months.”

“Thank you so much. I really appreciate the time you took with me today. I’ll get back to you then,” you say, smiling inside because you “KNOW” it’s only a matter of time before get lots of business from this firm.

What’s wrong with scenario? Actually, just about everything. If you were the seller, I’d tell you that:

• You suffer from a bad case of delusional thinking. The buyer brushed you off, plain and simple.

• You interrupted someone’s business day with no thought as to what they were doing when they picked up the phone.

• You lacked a peer-to-peer approach. Intelligent buyers immediately sense you’re a lightweight when you’re so eager to settle for a ‘fictional” appointment six months from now.

• You solidified your prospect’s positive feelings about the competition by the questions you asked.

• You were entirely focused on “what’s in it for you” - not the value your prospect gets from your using your product or service.

Certainly that wasn’t your intention. You were trying to be nice, conversational and perhaps even avoid sounding like a typical salesperson. Unfortunately, that’s not how you came across. You sounded pretty self-serving.

Tips For Getting High Quality Appointments

1. If you’re sick and tired of getting yourself caught in situations like this, use these tips to help you change the game.

• Plan out multiple contacts before you even pick up the phone.

    • Develop multiple scripts highlighting various aspects of your value proposition.

    • Then, write out various emails you can depending on your prospect’s business situation.

    • Finally, develop a campaign you can roll out over time.

2. Make sure your message focuses on your value proposition. Ensure each contact states the clear business value that clients receive from working with your firm.

• “We work with clients to significantly reduce time-to-market on new product introductions.”

• “One of our customers saved over $1/3 million in just the past year by eliminating the redundancies in their system.”

3. Treat the person you contact like a human being, not a prospect. In calling a friend, you’d:

• Automatically ask if you were interrupting: “Is it a bad time?”

• Notice if they sounded distracted and address it head on: “Hey, if you’re swamped right now, I don’t want to interrupt. I’d rather catch you when you have a few minutes to talk.”

• Immediately suggest a future contact, initiated by you: “When is a good time to call you back?”

4. Prepare for the common obstacles prior to the call - and eliminate them if at all possible.

• “We already use ___.” You respond: “Well I assume a company of your size would be working with another firm. (pause) AND that’s why we need to meet … “

• “We’re really busy right now. We couldn’t possibly take time to look at options.” You respond: “You and I know that six months from now your workload isn’t going to be any lighter. AND that’s exactly why we need to get together …

• “Your prices are too high.” You respond: “Yes our prices are higher than others on the market. AND that’s exactly why we need to meet …”

Please note that the second sentence starts with AND, not BUT! Because ‘and‘ doesn’t negate your prospect’s perspective, they’re interested in learning more.

Then, reel off 2-3 valid business reasons that this prospect should get together with you. They need to flow out of your mouth without hesitation, so prepare them ahead of time. These are true statements, not slippery manipulations, so make sure you state them with quiet confidence.

If you (or others in your company) can’t come up with any reasons, then you’d better take a serious look at the sustainability of your business model. Just because “you want their money” is just not a good enough reason for them to meet with you!

Recently I interviewed Amy, the “Vice President of First Impressions” for a small technology firm. Using the phone and email, she arranges meetings between her company’s sales reps and Chief Technology Officers from Fortune 1000 firms.

In less than 8 months, she’s set up appointments with over 50 of these big companies. She’s a real telesales professional. If you heard her conversations with prospects, you’d think they were her long-time friends.

Amy focuses on business, treats these C-level executives as equals and enjoys her conversations with them. But, she also has at least 4 voicemail messages and 3 emails at her fingertips, ready to use as needed.

In addition to the above strategies, Amy recommends that you:

5. Piggyback off competitors, if at all possible. When you’re trying to get into an account, don’t immediately try to displace long-standing incumbents. Instead, position your offering as one the co-exists alongside their current supplier or even enhances it.

6. Keep “tweaking” your “message” till you get it right. In her first three months on the job, Amy didn’t set up one single appointment. Yes, she was extremely discouraged. AND, she kept trying new approaches till she found ways that worked.

7. Be yourself! Laugh with your prospects, enjoy them - and let them know you’ll be coming back.

SUMMARY

Sounding like a sleazy, well-oiled seller will not get you an appointment in today’s market. Think of your phone calls as business-to-business conversations with peers. That may be a hard mind shift to make, but it’s where you need to be. If your business acumen is lacking, start reading up on the subject so you can become conversant.

And, most importantly keep working at it! Try focusing on different aspects of your value proposition. Try reframing what you say. Change a word or two, if need be. But don’t keep doing the same thing, again and again. That’s insanity.

 Jill Konrath is a leading-edge sales strategist and business advisor who helps sellers crack into corporate accounts, shorten time to revenue on product launches, speed up their sales cycle and achieve their revenue growth goals.

As a thought-leader in the selling and marketing arena, Jill speaks frequently to corporate sales forces and industry associations. She’s often featured in top business magazines including The New York Times, Business Journal, Entrepreneur, Sales & Marketing Management, and Selling Power as well as countless online publications. She’s been a guest of Entrepreneur Radio, Sales Rep Radio, Small Business Trends and more.

Several years ago, Jill started SellingtoBigCompanies.com to make her knowledge and expertise available to entrepreneurs, services providers and independent professionals. By creating this invaluable web portal, she became a highly sought after advisor to this growing market segment.

Her own client roster includes such well-known corporate giants as Hilton, 3M, Bombardier, UnitedHealthcare, Medtronic, RSM McGladreyand numerous technology/business services firms.

She is the mastermind behind Sales Shebang, a one and a half day sales conference for women who sell and if you haven’t booked your place yet, you can do so by clicking on the banner in the left hand column.

Today’s News: I have mentioned Sales Gravy before, but it is only recently that I have had the time to explore all the features - it really is a fantastic site full of free sales resources - you can check it out here

Tomorrow: It’s my turn again and I am going to discuss the most powerful form of selling……………..

I expect you have heard the expression, “People who fail to plan, are planning to fail” and nowhere is this more true than when it comes to planning sales activity.

Selling is both an art and a science. To put it another way, a sales person’s skills determine their level of artistry at selling and their strategic planning provides a scientific platform for their sales activities. One of the characteristics that makes a sales person successful is careful use of their selling time. Time is something that doesn’t stop, yet how it is used, affects performance that can leverage the impact of sales activities.

To influence sales results you need to work on your sales activities. For example, all the sales activities you have undertaken in the past have produced your current results. The sales activities you perform today will create your future results. Therefore, there is always a time delay between activities and results. Focusing on activities in a well-planned way naturally increases results. The Sales Platform concept is a sophisticated process for analysing, planning, directing and monitoring the activities of sales people.

The Sales Platform features three main elements:

1. Buying Platform – This comprises of existing customers who are purchasing from you on a one-off basis or a regular basis. This segment of the platform requires two strategic sales approaches:

• Sales actions that reduce the risk of losing customers (a proportion of customers are lost over time due to a variety of reasons)

• Sales actions that can generate incremental business from existing customers (it’s easier to get new business from existing customers compared to prospects)

2. The Working Platform – This comprises of prospects who have been visited yet aren’t currently buying. This segment of the platform is extremely time intensive yet is a crucial part of the development of an ideal customer base. The sales approach in this segment is to accelerate prospects through the pipeline until they become a customer.

3. The Market Platform – This comprises of leads that have not yet been qualified as prospects that have the potential to become customers. This segment of the platform is the vital preparation phase to replace lost customers and grow existing business in the longer term. The sales approach in this segment is to select the right type of opportunities that have the potential to become prospects. Banks of qualified prospects can be built up if appropriate – ready for a concerted attack on a targeted part of the market place.
In an ideal situation and based on the market conditions there should be a good balance between all three platforms.

Excess Buying Platform activity will constrain the growth of the business into those areas that are identified as the opportunities of the future. It is also a symptom that the organisation has got itself into a rut or a ‘comfort zone’, that the communication of policy is poor, that management is not controlling the work, or that people lack the confidence to tackle new areas (or a combination of all of them). Too much emphasis on the Market and Working Platforms is inefficient and will increase the cost of sales unnecessarily. Without a strong base of long-term customers, this will dramatically reduce the potential for growth, and could well lower the reputation of the organisation.

I have been using this method of activity planning for almost twenty years and I can promise you it works!

Today’s News: As you may well know, every week, the Top Sales Experts select ten sales related articles from a very small number of article communities and then vote for a winner; the details are always posted on Sundays at 18.00 hrs GMT: This week’s selection is exceptionally good but you can judge for yourself here. 

Tomorrow: On the JF Guest Author Spot, my very good friend, Jill Konrath is back: I was chatting with Jill on Friday and she is gearing up for Shebang which happens in just one week’s time - if you haven’t booked your place, there are still a few left, but do hurry!

  
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The first sale isn’t the end of the sales process but the beginning of the next sales cycle. What you do after you’ve made the first sale determines whether you get the next one or any referrals. New customers have a tendency to evolve through three phases once they decide to buy from you. Initially they feel very excited about their decision before going through a learning curve where they may struggle with blending in your products/services. Finally, they begin to experience the value that you provide and the relationship settles down and finds its own balance.

During Phase 2 this can be a potentially vulnerable time for a sales person, because without the benefit of an established track record, in the face of possible problems, no matter how minor, this is the time when most newly acquired customers are apt to change their mind.

The process of buying has four main components that all customers will evolve through.

They:

1. Have to be motivated to want to buy from you
2. Make a decision to buy from you
3. Want to feel convinced that they have made the right decision
4. Look for reassurance that they are doing the right thing

Once the customer has placed their order they are at the second stage in the buying process. If a sales person doesn’t provide the relevant reassurance that validates the benefits of their decision, then the likelihood of the customer cancelling their order increases dramatically. This is often referred to as ‘Buyers Remorse.’ Therefore, it’s important to provide tangible demonstrations that the customer has made the right decision. These can include, the use of testimonials, higher initial servicing levels, regular contact and if appropriate training sessions on the areas effected by the introduction of your product or service. There are a number of additional ways that can improve the post sale part of the sales process:

• Set a service agenda for the first thirty days after the sale so that your customer knows exactly what they can expect from you. This may include visits and phone calls at the point when they receive your product or your service begins. This enables you to have established contact frequency at important times when teething problems could occur.

• Ask each customer for their preferences in the way you manage their account and ensure that they have all the contact information for every eventuality.

• After the call send a hand-written note thanking them for their business. This is a personal touch that only takes a moment to do, yet leaves the customer feeling valued and special.

• Identify what areas in particular the customer feels is vital to the way you manage their account so that you can pay close attention to these areas.

• Agree up-front how future problems will be handled.

• Document all successes and evidence of your value in writing. For example: “I noticed that your delivery was received on time last Thursday and am delighted that you now have our products in stock.”

• Actively ask questions to check their satisfaction. For example, “Was everything as you had expected?” “Is there anything we need to change?”  This helps to flush out problems and manages the customer’s expectations so they feel they are genuinely being looked after. If there is a problem, the earlier you know about it the sooner you can remedy it

• Finally, resolve any complaints quickly and to the customer’s satisfaction.

Today’s News: There are now just a few places left for the sales event of the year, Shebang, which is being organised by my very good friend, Jill Konrath: Many of the Top Sales Experts team are amongst the speakers, including: Wendy Weiss, Kim Duke, Joanne Black and Anne Miller. You can find full details over in the left hand column.

Tomorrow: After three weeks in the UK, I am heading back home to France and all the home comforts: It has been a great visit; I got to spend some time with one of my favourite clients; we finished the new Sales Practitioners site; launched the sampler of “JF’s Blogging Good Year”; made considerable cosmetic changes to the superb Sales Leadership Zone ; began work on the new Top Sales Experts site, having expanded the team considerably and found a publisher that I respect - phew!

As ever, wherever you are, have a really great weekend and I will be back on Monday - JF

 

 

 

 

The JF Guest Author Spot

In Part 1, I examined how the proliferation of media such as magazines, TV, radio, and the internet has made the salesperson as the provider of information and guidance to prospects obsolete.  Now, we examine the impact this change will have upon salespeople.

In reality, this change in the way prospects view salespeople has just started.  It will continue to grow month by month, year by year.  And, unfortunately, this isn’t simply a change in the way salespeople need to market.  This is a fundamental change in the way people buy.  This is a change in what sales is.  This is the eventual death of sales as we know it for most consumers and most salespeople.

Does this mean the death of the salesperson?  Yes, as we currently know salespeople.  There will still be salespeople.  Most will be nothing but order takers, customer service reps with the title of salesperson.  It will still take years to come to full fruition.  However, it is well on its way.  The only conversation most “salespeople” will have in the future will be a variation of “Do you have it in red?”  “Great.  What’s your price?”

Yet, the very nature of this change is offering a select few salespeople the opportunity to make more money than ever before.  This change in the way people view marketing and their desire to make their own decisions based on knowledge and information give salespeople who grasp the opportunity the ability to become a dominate force in their local markets.

There will always be a segment of the market that understands they need guidance by experienced, skilled salespeople.  No matter how dominate the do-it-yourself mentality becomes; there will always be those who want to work with experts.  In addition, many who will be tempted to go the do-it-yourself way will gladly pay more to work with someone they perceive as a genuine expert. 

We are in the process of changing from a sales environment to an expert environment.  Salespeople are becoming dinosaurs, relics of a bygone era.  But just as dinosaurs were replaced with mammals, salespeople will be replaced with experts—publicly recognized forces in their industry within their local area.

What is an expert and how do you become one?  How do you not only survive in this changing environment but also become a dominate force?

We must first understand what an expert is.  An expert isn’t the “best” in their field from a technical standpoint.  An expert isn’t necessarily the most technically capable financial planner, insurance agent, networking engineer, IT consultant, telephony consultant, or Realtor.  That is a myth.  Thousands of the top technicians wash out of business every year because although they may be among the best technically, they have on one to sell to.

An expert is an expert because they are perceived to be an expert by their target audience.  They have the image and reputation of an expert. 

If you want to become a top producer in the new expert environment, you must develop a public reputation as an expert.  You must develop a local reputation as powerful as the experts writing the articles, giving the interviews, and being quoted in the news media. 

Developing that image and reputation doesn’t happen by accident.  Those who are recognized as experts work very hard at creating their image and their reputation not by using the traditional marketing techniques and strategies used by the majority of salespeople, but by using the tools and strategies that create a public image and then supplementing that image and reputation with well thought-out marketing.  Marketing is still present; it is simply an adjunct to the salesperson’s lead generation, not the focus.

Creating a pubic reputation takes time and effort.  You must learn how to use the tools, then create and implement a plan.  It doesn’t happen overnight, nor is it simply using a couple of strategies.  Creating a public image and reputation requires the use of a number of media and tools in combination, each reinforcing and branching off from the others.

Although it isn’t necessary to use every possible reputation-building tool, an expert reputation requires the use of such things as press releases, blogs, writing educational articles and books, becoming an expert source for media and freelance writers, educational websites, public speaking, developing strong referrals from clients and customers, and creating alliances and partnerships with other experts.  Of course, there are other methods and strategies available. 

Creating a public reputation as an expert is moving from a marketing mindset to an educational and publicity mindset.  It captures the power of education and combines it with a message of unique status and stature within the salesperson’s field.  It converts selling to education and eventually brings it back to selling. 

If you want to thrive in the new expert environment, learning how to convert your business from being a salesperson to being a recognized expert is mandatory.  Whether you are relatively new to sales or an old pro, now is the time to begin to seriously work on moving your business to a recognized expert platform.  The change in how people buy is well on its way and grows daily.  Companies are actively preparing for the change and salespeople must also prepare.  And although the change will not favor the majority of salespeople, the future is brighter than ever for those willing to invest their time, money and energy in learning the new realities of selling.  

Paul McCord, president of McCord and Associates, a Houston,Texas based sales training, coaching and consulting company, is an internationally recognized authority on prospecting, referral selling, and personal marketing. His best-selling book on referral generation,Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals (John Wiley and Sons, 2007), is quickly becoming recognized as the authoritative work on referral selling. His next book, SuperStar Selling: 12 Keys to Becoming a Sales SuperStar will be released in February, 2008. He may be reached at pmccord@mccordandassociates.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or through his sales training website at www.powerreferralselling.com 

Today’s News: There is a great interview on Salesopedia today - one of the newest members of the Top Sales Experts Team, Rochelle Togo-Figa, is in conversation with Clayton Shold and you can listen in here

Tomorrow: “Understanding The Three Post Sale Phases” - Yep, there really are three!!

“During the course of a meeting or series of meetings, customers are bound to ask you questions and raise issues or objections. At first, these might throw you off course. You might feel like a sailor making good headway suddenly hit by a sideways wind. You have a choice: either you fight the wind or pretend it is not there or try to harness the power it can give you … If you interpret the customer’s intention as being positive to seek more information, greater understanding and clarification, then you will harness the wind and make faster progress towards your destination.”
Joseph O’Connor and Robin Prior, ‘Successful Selling with NLP’

In essence there are two combat strategies regarding objections. The first is pre-empting them – in other words, by anticipating and responding to the objection before the prospect has even had a chance to voice it. The second is by dealing with the objection as it arises. If you are prepared to incorporate both strategies then you’ll encounter fewer objections and be more resourceful when they do arise.

Pre-empting objections enables you to plant a positive association to an anticipated concern, your prospect may have. For example, if you thought that you might encounter an objection regarding price, then at the early stages of your discussions you could say something along the following lines:

“In the past, some of our customers have initially thought our products too expensive. However, as soon as they considered how much their current situation was really costing them, they realised that we offer exceptionally good value.”

The key to using this strategy is being able to put a positive ‘spin’ on every potential objection, and use the social proof principle by referring to the objection as one that others have also experienced initially, before they realised the overall benefits. In the example shown above you’ll also notice that it incorporates “Away From” motivation, (“how much their current situation was really costing them”) with “Towards” motivation, (“they realised that we offer exceptionally good value.”) To make this strategy even better, customer testimonials that highlight this objection in terms of how they felt initially then what convinced them to buy from you, can really drive your point home.

The second strategy is a seven-step process that can be followed when encountering any type of objection. If your sales team learn this process they can apply it to every objection that arises, irrespective of whether they’ve heard it before.

Here are seven suggested steps:

Step 1 – Remain silent
Gives you time to think and sometimes the customer may even answer their own objection for you. Thinking is a good thing where you are adding a little pause into the proceedings, because you are demonstrating that you are taking their objection seriously. If you jump in too early you may cause a further objection. When you interrupt them, it feels as if you are objecting to their objection. If you refuse to listen you are creating a strong possibility that you will lose rapport. Use active listening methods, nodding and physically showing interest. Remember, they are trying to tell you something that will help you sell to them, and they will be giving you more information about how to frame and re-position your selling proposition.

Step 2 – Gather information
As appropriate, ask some questions to fully understand the objection, for example, “Tell me more about…” or “What do you mean?” This shows you are interested in them, and it also gives you more information about their objection. If you ask a question that begins with “Why?” they will reinforce all the reasons for their objection, making it harder for you to respond to. Therefore, use open questions of any type, except those that start with this. As you question them, watch carefully for body language that gives you non-verbal feedback about what they are really thinking and feeling. Keep your questions light and relevant, if you respond in a commanding, forthright manner, they’ll feel insignificant and closed to voicing any further objections.

Step 3 - Check your understanding
This lets the customer know that you understand their objection and are taking it seriously, for example, “So what you’re saying is…” This also helps to maintain good levels of rapport and conveys that you are seeking to properly understand their situation. This step is important because communication can get distorted and you’ll want to answer their objection rather than install a new one!

Step 4 - Trial close
This takes ‘checking your understanding’ to the next level because it flushes out any hidden objections, or the real objection behind what may have been a smokescreen. For example, “If I could satisfy you on this point will you order/buy today?” Your sensory acuity at this point should be focused on looking at their non-verbal response. If they say “yes” and their non-verbal communication conveys “no”, you should acknowledge what you’ve noticed. For example, “You don’t look sure, what else is there that we need to cover?”

Step 5 - Handle the objection
Provides the customer with another perspective that could eliminate or neutralise their objection. The best way to become excellent at this is to pre-prepare ideal responses to commonly encountered objections. An important proviso to this suggestion is that it’s critical not to distort what the customer is telling you so that their objection fits into one of your pre-prepared responses as a foundation. Another great way to improve your competence in this specific area is by reviewing any objections after each meeting to build an objections library. Some of your responses may be more successful than others, which is why it helps to log the responses that worked well. Good product and service knowledge is particularly useful with this step as well as having a good understanding of your competitor offers.

Step 6 - Check customer satisfaction
You’ll notice that ‘checking’ is an ongoing theme during a consultative sales process. Used at this point, checking the prospect’s satisfaction both verbally and by assessing their non-verbal behaviour provides you with their feedback that you’ve been successful in handling the objection. For example, “Have I handled this to your satisfaction?” or “Does this make more sense now?” If their response is a “No” then you’ll want to be flexible in your next response because if what you’ve attempted hasn’t worked, you’ll want to keep changing your response until you find a way that DOES satisfy their objection. With this particular step, your flexibility is a vital part of the process.

Step 7 - Ask for order/continue discussions
This step ensures you move discussions forward, for example, “Are you ready to go ahead now?” or “Shall I go ahead and prepare the paperwork?” If your prospect says “No” then you’ve either not handled their objection to their satisfaction or they have another objection. It’s also a valid point to remember that resistance from a prospect is usually a sign of insufficient rapport. Therefore, check that you are matching or mirroring the prospect and go back to step 6. If they are satisfied with your handling of their objection, then ask “So, what’s preventing you from moving forward with this?”

Today’s News:

Tomorrow: On the JF Guest Author Spot you will get the chance to read Part 2 of Paul McCord’s excellent “The Death Of Marketing”

The JF Guest Author Spot 

Death usually comes slowly in sales.  More salespeople died in sales in the 20’s because of an inability to find enough prospects to sell than for all reasons combined.  Same in the 30’s, and the 60’s, and the 90’s, and every decade in-between.  Finding prospects and marketing to them has always been the leading killer of sales careers, and that death has typically been a slow, agonizing one due mostly to a lack of effort on the part of the salesperson or more often, the ineffective use of the marketing methods they chose to employ to reach prospects. 

Today, the very marketing methods that have been used by both successful and failed salespeople for the past 100 years are themselves dying a slow, agonizing death.

There was a time, not too long ago, in fact, when prospects and clients looked to salespeople for advice and guidance.  Prospects knew they needed information.  They knew they needed help in finding and evaluating alternatives and solutions to problems and issues. 

In an environment where prospects needed salespeople, the personal marketing methods salespeople employ such as cold calling, fliers, direct mail, and such worked well to reach out to and influence prospects.  Moreover, a skilled salesperson could use those methods to set themselves apart from their competition.

Nevertheless, the sales environment is fundamentally different today from in the past.  Today’s reality is that prospects no longer need and a rapidly growing number no longer want salespeople involved in their purchasing decisions.  For most salespeople, the world has moved beyond them; however, they have yet to recognize it.  They’re still living in the past, in a world where prospects and clients needed them. 

For a great number of prospects, both individual and business, the salesperson as supplier of information and guidance is outdated.  These individuals and businesses have passed over the divide from those who feel a need to rely on a salesperson for guidance, to those who believe they can make better choices without a salesperson involved in their decisions.  Moreover, the numbers who are moving over to the do-it-yourself side of purchasing are growing larger everyday.

With the proliferation of the internet; the avalanche of books, magazines, and white papers addressing every conceivable subject; cable TV with programming covering everything from personal finances, to virtually every business subject one can think of, to the most intimate personal, family, and social subjects, a huge number of prospects believe they already have the information they need to make decisions.  Now, all they need is someone who will provide the cheapest price for the product or service the prospect has determined will solve their problem or meet their need.

The sales environment is undergoing a swift and dramatic change.  Over the past decade, prospects have become more aware of the bombardment of marketing they face everywhere they turn.  Their mail is dominated by direct mail offers.  Almost every internet site they visit is flooded with marketing and advertising.  Newspapers and magazines are more than 50% advertising.  Radio and TV are, of course, marketing driven.  Everywhere one looks is marketing:  billboards; the side of the car next to you may well have a magnetic sign marketing something; the license plate frame on the car in front you advertises the dealership the car was bought from; the pen in your pocket may well have some company’s logo; and the horde of cheap signs on the street corner advertising shops going out of business, cheap internet, cheap insurance, cheap everything. 

Then, of course, the cold calls.  Cold calls for investments, insurance, internet connections, phone service, you name it.  Cold calls at work.  Cold calls at home.  How many do you get everyday?  5?  10?  More?

Of course, we’re not done.  Spam.  How many spam messages do you get?  How many lotteries have you won this week alone?  How many dead princes, long lost relatives, and just plain old Good Samaritans died and their representatives have contacted you this week for you to claim your inheritance–or someone wants you to help them sneak ill-gotten funds out of some third world country?  How many lonely hearts have you heard from this week wanting to become “friends?”  How many offers for discount software, discount drugs, or incredible stock tips have you received this week?  How many legitimate businesses have stuffed your e-mail box with junk that you didn’t request and didn’t want?  I will typically get about 1,500 pieces of spam every week–over two hundred a day.  Everyday.

And what do all of these things have in common?  Well, besides being unwanted, all of the businesses pushing products or services claim to be the best.  They all claim to have the best price or the give the most value.  They all claim to have the best customer service. 

They all have the same message, which means none have any message.  Every direct mail piece is virtually the same, only with different pictures.  Every salesperson sounds exactly like all the other salespeople.  Every ad is just like the others.  None can be heard over the din of the racket made by all this marketing.

Is it any wonder people despise marketing?  Is it any wonder people will go to great lengths to avoid salespeople?  Is it any wonder that marketing and sales as it has been practiced in the past is dying?

Why are these millions of personal and business consumers convinced they no longer need you?  They believe they no longer need you because they are getting their information from “objective” experts, not from biased, commission-oriented salespeople.  They are making their own decisions without need for you because they have read an article or book, or heard a report by an unbiased expert who gave them “objective” information that they can act upon.  Rather than relying on the slanted and obviously prejudiced information a salesperson gives, they turn to the experts who they believe don’t have a dog in the fight. 

Prospects don’t want to be sold, despite what some salespeople and even some sales trainers think.  They want to be educated.  They want real information as a basis for making their own decisions.  They don’t want marketing; they want knowledge.  They don’t want sales brochures; they want reporting and facts.  They want to be dealt with as educated people capable of making their own decisions based on reliable information.  And whether they are right or not, they don’t believe salespeople provide that information.  Instead, they rely on recognized experts.

Moreover, companies are reinforcing this belief by rushing to provide these prospects with the means to make their do-it-yourself purchases at the lowest possible price.  There are companies in almost every industry you can think of that are catering to this growing mass of consumers.  There are thousands of these companies, and the list is growing daily.  Some companies even try to have it both ways by maintaining a traditional sales force while undermining their sales team by at the same time trying to lure prospects by providing a do-it-yourself internet site or 800 number where the prospect can purchase without having to speak with a salesperson.

Companies such as LegalZoom.com turn many legal document issues into a cheap, fill in the blank exercise.  Esurance, AIG, Geico, Progressive, and many others encourage consumers to eliminate the insurance agent for auto insurance, while other companies are doing the same for home, health, life, and even business insurance—after all, it’s just insurance and who needs an agent to make the purchase more expensive?  Mortgages, investments, real estate transactions, and hundreds of other products and services also have their version of the do-it-yourself product and service provider.

In part 2, on Thursday, I look at what this radical change in buyer behavior means for salespeople and personal marketing.
Paul McCord, president of McCord and Associates, a Houston,Texas based sales training, coaching and consulting company, is an internationally recognized authority on prospecting, referral selling, and personal marketing. His best-selling book on referral generation,Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals (John Wiley and Sons, 2007), is quickly becoming recognized as the authoritative work on referral selling. His next book, SuperStar Selling: 12 Keys to Becoming a Sales SuperStar will be released in February, 2008. He may be reached at pmccord@mccordandassociates.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or through his sales training website at www.powerreferralselling.com

Today’s News: The more observant of you will have noticed a new widget in the left - hand column; yep, “JF’s Blogging Good Year” is ready to download: It is a sampler edition and as I said in the introduction, I do hope you feel compelled to buy the hardback version, which will be on the shelves before Christmas.

Tomorrow: ”The Two Combat Strategies Regarding Objections”

Imagine a bath filled with water, almost instantly the water begins to evaporate or can slowly seep through the plughole.

Over a period of time the water level reduces and the temperature drops! The only way to keep the water level high and the water hot is to turn on the tap and continually refill it. Equally, you want to keep your prospects ‘on the boil’ by actions that continuously warm up and consolidate your relationship with them. You certainly don’t want all your efforts to go down the drain!

The moment you contact a qualified prospect you are committed to the time consuming process of ongoing discussions and you have created a real opportunity to convert potential business into actual sales. This is often referred to as ‘pipeline business’ because the more progress you make, the higher your probability for success.

Here is a very simple but effective, objective weighting system:

   Sale (Delivered And Paid For) 100%
• Written Agreement 90%
• Verbal Agreement 80%
• Proposal/Negotiation 50%
• Offer/Proposal 25%
• Qualified Via A Rigorous Objective Process 15%
• Conducted A Formal Exploratory Meeting 10%
• Made Appointment 5%
• Prospect 0%
• Suspect

In this example you can see that each milestone in the sales process has a % probability rating. These milestones and percentages will vary from organisation to organisation, yet the principle that the more milestones you reach the higher the probability for success remains valid for everyone. These milestones form goals against which you can plan specific activities. These can then be translated into specific objectives that you can review and monitor at each stage.

The ability to leverage your probability for converting potential business in your pipeline is a vital part of the sales process and helps to focus your mind onto getting each prospect to the next milestone. Speed of follow-through is really important because it helps to create a momentum that consolidates your relationship with potential new customers.

The following suggestions can help you accelerate your prospects through your pipeline, and increase your probability for winning more deals:

• Agree the next steps with your prospect, and ensure that you are clear on the actions that will take you to the next milestone and closer to the sale.
• Before agreeing any actions with your prospect, ask yourself if these actions are leading you towards a sale. If you can’t see the tangible reason for doing an action then you could find yourself in a never-ending situation of fruitless discussions that dilute your results.
• Send an acknowledgement and confirmation of agreed actions to your prospect within 24 hours if possible. This conveys professionalism and provides another layer of reassurance for the prospect.
• At the end of every telephone call and meeting with your prospect, agree a specific time and date for your next contact. Lots of your valuable time can be wasted trying to get in touch with a busy buyer!

A well-managed pipeline helps to improve the consistency of results achieved and creates a platform for more accurate sales forecasting. If pipeline management is not an integral part of an organisation’s sales process, this can result in a number of problems including; longer sales cycles, reduced forecasting accuracy, inconsistent and unpredictable sales performance, declining win-rates and an inability to pinpoint reasons for decreased results.

You can’t manage what you can’t measure, and if you can’t measure your pipeline then you can’t improve your productivity. There are a number of Key Performance Indicators (KPI’s) that can be measured, monitored and managed to ensure achievement of sales targets:

KPI      

• Pipeline Opportunities - These should be measured in value and the number of opportunities in the pipeline.

• Opportunities by Milestone - Once these milestones and their different probabilities of closing have been calculated, these figures ensure greater accuracy of forecasting

• Average Deal Size -  This ensures better focus on larger deals and ideally will increase steadily each year

• Sales Cycle Time - Shortening this can have a huge impact because of the cumulative ‘saved time’ available for prospecting

• Profitability - Margins can be tracked to ensure that there is sufficient contribution to enable ongoing account handling

• Conversion Ratio - The number of opportunities won and the % of pipeline potential converted.

 Today’s News: We managed to finish the sampler copy of “JF’s Blogging Good Year” over the weekend and it will be available for download tomorrow - I think you will like what we have done.

Over on the Blog Zone today, I am discussing the future of Leadership and whether you are a leader or a follower, I think you will find it interesting.

Tomorrow: On the JF Guest Author Spot, Paul McCord makes a very welcome return with a two part article which has been causing quite a stir: Paul has received a huge amount of really unpleasant messages after publishing the “Death Of Marketing” - see what you think. My personal view is that he hit some very raw nerves and most mature sales professionals will concur totally with his views.

Sales presentations become so much more compelling at the point when you have identified and agreed all your prospects requirements, and have tailored your presentation so that it illustrates how you can completely satisfy their agreed requirements. If you can then add your unique strengths to what the prospect is looking for, your proposal becomes stronger and much more persuasive.

Here are ten suggestions that help improve the effectiveness of any presentation:

1. Find out in advance how much time you’ll have and plan that your presentation will take approximately 75% of the allocated time. This leaves sufficient time for questions and through handling of any objections that you may encounter.

2. If you are in a competitive situation, find out when the other suppliers are scheduled to present and if possible try to be the last presenter. The reason this can be so important is because your prospect can make a proper comparison of your presentation in light of your competitor’s presentations, meaning that they are better equipped to recognise the added value you provide. This also creates a stronger possibility that you can get a decision from them at the end of your meeting.

3. When structuring your presentation start with a quick review of the prospects’ goals and objectives, and then list their agreed requirements. This will determine the sequence and structure for your presentation, because ultimately you’ll want to highlight how your solution meets each one of their requirements. During your fact-finding meeting you should have obtained a priority of their requirements so that you can address their most important requirements first.

4. Throughout your presentation incorporate relevant customer testimonials that validate the points you are making, and if you refer to research statistics ensure that you quote the source.

5. At the beginning of your presentation you want your prospect to be interested and compelled to listen to what you are about to present. That’s why structuring your opening in a format to appeal to all types of prospects makes it easier for them to understand your message. Therefore, open your presentation by addressing 4 main questions:

• Why will the prospect benefit from your presentation/products/services?
• What will be covered during your presentation?
• How will you be conducting your presentation?
• When will the prospect be able to ask questions?

This simple structure is based on David Kolb’s work on learning styles, where he categorised people’s ability to learn into four learning dimensions:

• Concrete experience - learning from specific experiences, relating to people, and sensitivity to feelings and people

• Reflective observation - careful observation before making a judgment, viewing things from different perspectives, and looking for the meaning of things

• Abstract conceptualisation - logical analysis of ideas, systematic planning, acting on intellectual understanding of a situation

• Active experimentation - ability to get things done, risk taking, influence people and events through action
Bernice McCarthy, developed “The 4MAT” system based around these four main learning styles, each of which asks different questions and displays different strengths during the learning process.

The Four Learning Styles are integrated into a cyclical approach that:

- Begins by explaining WHY the audience will benefit from your presentation. This provides concrete motivation in an innovative way to create interest and an openness to want to hear what you have to say.

- The process then continues by explaining WHAT you are going to talk about. This enables the audience to think through the concepts you are about to present and formulate them in an analytical way.

- The next stage is the abstract conceptualisation stage that explains HOW you’ll be delivering your presentation.

- This then leads to the final stage; the active experimentation stage where you want to encourage IF questions so they can apply what you have said to different contexts.

6. Use visuals in your presentations because a picture is worth a thousand words. Support your important points with graphics and images yet keep them simple to maintain interest while conveying relevance. This is particularly important if your prospect has a dominant Visual communication style.

According to the Robbins Research Institute, they have identified the 12 most persuasive words to use when selling.

These are: Discover, Free, Guarantee, Love, Money, New, Proven, Safe, Save, You, Results and Exciting.

By combining some of these words into your visuals as well as in what you are saying will help ensure your prospect remains alert and interested.

7. A good presentation will clearly communicate all of your unique strengths and reasons why you are their best choice. Ultimately, most prospects want to know two things:

- Can you do what needs to be done?
- How can you do it better than the other options we are considering?

8. Seek to gain agreement throughout your presentation either non-verbally or by asking questions, for example, “How does this sound?” After demonstrating a capability you could ask, “How would this be an improvement?” or “How would this help?” Interactive presentations keep prospects more involved and interested. Throughout your presentation focus your attention on your prospect, checking that they are receiving your proposals positively.

9. Handle small customer objections as they occur and agree to handle larger
objections at the end of your presentation. This ensures that the flow of your message remains on track, and you may have answered their objection during the process of presenting.
 
10. If your prospect is not in a position to make a decision at the end of your presentation, schedule another appointment. Come up with a reason to get back in there.

Even if the decision is not in your favour, you’ll receive some valuable feedback that you can incorporate when you next present to other prospects.

Today’s News: Yesterday, I issued the Prospectus to the expanded Top Sales Experts team, together with our vision for 2008 and the response was fantastic: Clearly, this group of sales gurus are going to work so well together and I am tremendously excited.

We also finished the cosmetic changes to SLZ - www.salesleadershipzone.com and I have to say the team have done an amazing job with the new Group site - www.thesalespractitioners.com

Tomorrow: I rest? I wish :-(  I have the copy of the “JF’s Blogging Good Year” sampler to read through and blog postings to prepare, plus planning three days with my favourite clients next week - oh, and of course, gearing up for the biggest rugby match for four years: Wherever you are in the world, have a great w/e and if it’s in Paris on Saturday, come and say “Hi” you will easily spot me amongst the 50.000 England fans Swing Low You Sweet Chariot - Just bring me home.

The JF Guest Author Spot

“BUILD YOUR BUSINESS THROUGH SMART NETWORKING”
By Andrea Nierenberg
________________________________________

Many of us still have a negative perception when we hear the word “networking” and as I always say, it’s a misunderstood word. My theory is that good networking skills build links and alliances with people we meet along our career path.

“The opposite of networking is not working”-you can learn from everyone you meet and also be a resource to them. If you are lucky, down the road something may come back.

Here are a few questions that I am asked as one thinks of this “new philosophy” on something that has been around since the beginning of time.

1. Is networking just about finding customers and growing one’s business?

Networking is all about developing and building relationships first. When this happens with hard work and sincerity, customers will come. It’s like a garden. When you meet new people for the first time, it’s like planting a seed. When you stay in touch by meeting for coffee or sending a holiday card, it’s like watering the seeds. Finally when there is a genuine reason for you to have a closer working relationship or friendship, it’s like the harvest. Remember we can plant and we can water-however the growth is a natural and organic process. You cannot rush it. One needs to think win/win and patience. I look at each connection I make as how I can help or refer that person. The biggest joy is when I put someone in touch with someone else and they do business together. Three of my major corporate clients took over three years to develop-lots of staying in touch, patience and finally an opportunity to work on an assignment. Each has turned into multiple referrals within the organization. The goal is stay in front of people, to be on their radar screen as a thank you. I do this with my electronic tips of the month, my quarterly newsletter and a variety of articles.

2. What has been the biggest “negative” that I have heard about networking?

The top complaint that came from a national survey that my company did was about people who act like they are trying to sell you something-right when they meet you. They pounce on you and tell you only about themselves and don’t have any interest in you. Another complaint is about people who lose interest if they don’t think you can help them-the people who figure they only need to “network” when they NEED a job or business.

The key is always to give first. Be a resource-go through your database and think how you can help the other person. Every day, get in touch with three people just to say hello. I do this systematically. It could be as simple as sending an article including a note saying “I haven’t spoken to you in a while, and thought you might be interested in this.” Or let them know about an event they might enjoy, or congratulate them on a recent accomplishment. Keep it sincere, short and make it about them-not about you.

3. Is networking costly in terms of time?

Networking the way I look at it, is part of everyday life. Think of your current business or company-how can you connect with each person, vendor, or client and then plant seeds so that you get referrals. Ask questions, show interest and ask about things that are of interest to them. The “time” that you invest will be paid back many times over as you are developing and building relationships.

Think of the associations you belong to and make the time that you go to these meetings and functions work for you. Get involved: work on committees and meet and develop new contacts throughout the year.

4. What are some things you can do to become more visible in your community?

Offer to speak at a local organization meeting. You might also offer to do a free mini seminar on your specialty in business. Write articles and publish your own newsletter, which you will send to your master file and also to a prospect list and database that you continually are developing and building. On the market, there are many pre-produced marketing pieces that can be created and customized with your name and contact information. Just be sure to always sign it yourself and if possible add something personal. For me, the newsletter is a “piece of gold”. I send out 2,500 copies quarterly and I always personalize each one-it can be as simple as: “Hi, Lisa, hope you’re great! Andrea.”

5. What are the five great keys to building your business through networking?

o Meet people and nurture your current network.

o Listen and learn from everyone you meet. We learn more by listening then talking, which is why we have two ears and one mouth. Also-we can learn from those we do not like-we learn how not to be. When you listen-you also learn what people need and how to be a resource and give to them.

o Make connections for others-find ways to connect other people together. I say 1+1=3. People will remember who made the original connection.

o Follow up-this is critical and the one thing most people forget to do. Under promise and over deliver. Do what you say and do it in a timely fashion. A wonderful quote I live by: “Give without remembering, and receive without forgetting.”

o Find creative ways to follow up— There is always an opportunity to stay on people’s radar screen with an article, note, something of interest to them-even remembering their birthday.

Remember this:

N Remember people’s Names and Nurture your Network

E Have good Eye contact, Empathy and know when to Exit

T Talk less, listen more-think, Trust, and Timing is everything

W Write personal notes to people and remember this is Work!

O Every time you meet someone is an Opportunity to learn and be Organized

R Reputation, Relationships, Reflection, Rapport, Results

K Knowledge is power with execution, Kindness pays!

I Be Interested in others, Integrity is key, take the Initiative

N Sometimes you have to say No

G Goals, Gratitude, be Generous with your time

Andrea Nierenberg, “a networking success story” (The Wall Street Journal), is the author of Nonstop Networking: How to Improve Your Life, Luck and Career. Ms. Nierenberg works with leading companies to improve interpersonal communications for management and staff. She offers keynote addresses and custom-designed programs on motivational techniques, networking tactics, and presentation skills.

To contact Andrea Nierenberg, write to The Nierenberg Group, 420 E. 51st Street, Suite 12D, New York, NY 10022. She can be reached by phone at 888-605-5911 or by e-mail at info@mybusinessrelationships.com, web address: www.mybusinessrelationships.com

Personal Note: Andrea is not someone who merely “talks the talk” - she really practices what she preaches, which is why she is genuinely a “guru” on the subject: Since the Top Sales Experts team was formed last March, I have come into contact with some wonderful people and Andrea is right up there. I am so pleased that we have become such good friends and she has my complete admiration for both what she does and who she is. - JF

NB:This is just one of the articles that you will find in the latest edition of “The Top Sales Experts Share Their Top Articles” and you can download the full book for free by clicking on the banner in the left hand column.

Today’s News: On Monday we announced Salesopedia’s latest initiative, Jobs Central and today’s podcast features Clayton Shold in conversation with Derrick Moe and Jeremy Miller - the subject is: “Recruiting Trends” You can catch it here.

Tomorrow: “Always finish strongly” has always been a personal motto of mine and so tomorrow, I give you:”The Most Persuasive Presentations”